Where Franchisors Require You to Litigate (Item 17 Dispute Venue, 2026)

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Key facts


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VetMyFranchise Research · Item 17 Verified

If a dispute goes to court or arbitration, where does it happen? Franchise agreements almost always fix the venue — usually the franchisor's home turf. This report counts U.S. franchisors by the state named in their FDD Item 17 dispute-resolution clause, across 1,439 brands where our extraction of Item 17 was verified against the filing.

1,439 verified brands · 49 states · FDD Item 17

Key findings

Most-named venue

California

241 brands · 16.7%

Top 3 states

34%

of verified disclosures

States represented

49

distinct venue states

Verified brands

1,439

FDD Item 17

How to read this report

How to read this report

Franchisors by required dispute-venue state

Count and share of verified franchisors by venue state, most first. Sortable by count, share, or state name — click any header (both directions).

Dispute-venue state↕ Franchisors↓ Share↕
California 241 16.7%
Texas 135 9.4%
Florida 115 8.0%
Other / non-U.S. / unspecified 68 4.7%
Georgia 53 3.7%
Illinois 51 3.5%
Minnesota 51 3.5%
Colorado 47 3.3%
New Jersey 47 3.3%
Ohio 44 3.1%
Washington 43 3.0%
Arizona 42 2.9%
Virginia 38 2.6%
Maryland 36 2.5%
New York 35 2.4%
Utah 35 2.4%
Pennsylvania 30 2.1%
Michigan 29 2.0%
Wisconsin 29 2.0%
Delaware 26 1.8%
Nevada 26 1.8%
North Carolina 25 1.7%
Missouri 20 1.4%
Tennessee 17 1.2%
Indiana 14 1.0%
Nebraska 13 0.9%
Kentucky 12 0.8%
Louisiana 11 0.8%
Oregon 11 0.8%
South Carolina 11 0.8%
Massachusetts 10 0.7%
Oklahoma 9 0.6%
Idaho 8 0.6%
Kansas 8 0.6%
Connecticut 6 0.4%
South Dakota 6 0.4%
Rhode Island 5 0.3%
Wyoming 5 0.3%
Maine 4 0.3%
Alabama 3 0.2%
Arkansas 3 0.2%
Iowa 3 0.2%
Mississippi 3 0.2%
Montana 3 0.2%
District of Columbia 2 0.1%
New Hampshire 2 0.1%
Alaska 1 0.1%
New Mexico 1 0.1%
North Dakota 1 0.1%
Vermont 1 0.1%

Click any column header to sort ·

50

rows

shown

Methodology

Methodology

Source. Franchise Disclosure Document, Item 17 (Renewal, Termination, Transfer, and Dispute Resolution). We count each franchisor once by the required venue for litigation or arbitration disclosed in its Item 17 clause.

Sample. n = 1,439 verified brands. Ranked from franchises where our extraction of Item 17 was verified against the filing — an independent AI judge (a different model family, to reduce shared bias) confirmed the value against the source text. Brands without a verified Item 17 dispute-venue disclosure are excluded; unverified and legacy values never enter this count.

Normalization. Free-text venue disclosures (a bare state, a county, a city, a postal "City, ST", or a full arbitration clause) are each mapped to a single U.S. state. 68 disclosures name a foreign venue or a relative venue (such as "the county where the franchisor maintains its principal place of business") that resolves to no single state; these are grouped as "Other / non-U.S. / unspecified" and always listed last.

Cite this. Please attribute figures to "VetMyFranchise, Item 17 Dispute Venue Report 2026" and link to this page.

Read the whole contract: $49

Venue is one line of Item 17 — governing law, arbitration rules, jury-trial waivers, and fee-shifting sit right beside it. For one brand's full dispute-resolution terms plus fees, Item 19 earnings, litigation history, and a buyer verdict, our 12-section FDD analysis is $49 per report, or three for $99.

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